crystaluni
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So ridiculous, that it wasn't even annoying. The guy reminds me of Spud from Trainspotting -- can't be angry at him. Social connectivity and influencing happened already - and quite boring - actually the next steps are in the opposite direction. The Digg example illustrates it best: initially rewards are used, but then it becomes not only unnecessary; it becomes unproductive. Schools have been games for a long time and are bad because of it; now is the period for them to grow out of it.
The gaming setup is fine only as long as it can avoid becoming serious. The moment it becomes really serious and the lives of people are determined by the outcomes, it begins to have more negative than positive impact.
One example is the higher tier of the academy - it's pretty messed up at the moment, because winning rewards actually determines someone's status and lifestyle etc. This should be fixed asap, otherwise only the low-mid tiers will function properly -- where winning does not cause others to lose anything.
Not all games are created equal. In game theory, there are different set ups. Basically, you have win-lose zero sum set ups or win-win setups where the payoffs are structured differently. For instance, war games create win-lose scenarios, but collaborative and creative games that do not overly emphasize ranking or competition but more of completion and harmony are equally viable. I agree with you that we need more of the latter in our schools.